Dogecoin Skyrockets 150% in Volumes Amid $979 Million Market Sell-off

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Dogecoin (DOGE), the popular dog-themed cryptocurrency, experienced a decline on Friday amidst a widespread market sell-off. This downturn reflected crypto traders' assessment of mixed macroeconomic data and effectively reversed the bullish momentum observed in recent weeks, intensifying a wave of profit-taking that had commenced earlier in the week.

DOGE saw a dip of nearly 8% within a 24-hour period, signaling a shift towards risk aversion among crypto investors. This price decrease coincided with a significant 150% surge in trade volume over the same period. CoinMarketCap data reveals that 11.53 billion Dogecoin, equivalent to $2,028,469,753, were exchanged in 24 hours, marking a substantial 155% increase.

The surge in trading volume potentially indicates institutional distribution rather than panic selling by retail investors, as traders capitalize on DOGE's inherent volatility to secure profits.

As of the time of writing, Dogecoin was trading at $0.176, reflecting a weekly loss of 14%. In this volatile market environment, resistance is currently positioned at $0.190, while support appears to be forming between $0.169 and $0.170.

$979 Million Liquidations Impact Crypto Market

Emerging uncertainties in global markets triggered a decline in major cryptocurrencies during the early hours of Friday, resulting in the liquidation of nearly $1 billion in leveraged positions.

Data from CoinGlass indicates that traders suffered $979 million in liquidations, with $870 million stemming from long positions, signifying a washout of bullish bets. Short positions, conversely, accounted for $110 million in liquidations.

These liquidations impacted prominent cryptocurrencies, with Bitcoin leading the way at $345 million liquidated in the past 24 hours, according to CoinGlass data. Dogecoin experienced $27 million in liquidations, as altcoin traders were caught off guard by the unexpected price drop.

A cascade of liquidations often points to market extremes, suggesting that a price reversal could be imminent as market sentiment shifts decisively in one direction. Read original article on U.Today